Question

Strategy makers must consider 'pressures from the corporate culture' and assess a strategy's compatibility with that culture. If there is little fit, management must decide if it should:

1) Modify the strategy to align with the corporate culture
2) Change the corporate culture to align with the strategy
3) Abandon the strategy and develop a new one
4) Ignore the corporate culture and proceed with the strategy

Answer 1

Strategy makers must assess a strategy's compatibility with corporate culture to ensure smooth implementation and organizational alignment. If misalignment occurs, options include modifying the strategy, changing the culture, developing a new strategy, or ignoring the culture to proceed with the strategy.

Step-by-step explanation:

When strategy makers consider the development or implementation of a strategy, they must assess the strategy's compatibility with the existing corporate culture. There are critical decisions to be made if there's a misalignment between the new strategy and the corporate culture. The management has four primary options:

Modify the strategy to better align with the corporate culture.

Change the corporate culture to be more in line with the strategy.

Abandon the strategy altogether and develop a new one that is more suitable.

Proceed with the current strategy regardless of its compatibility with corporate culture.

Corporate culture encompasses the values, beliefs, and behaviors that shape how a company's employees interact and work. It's important that new strategies fit within this cultural framework to avoid friction and resistance. If a strategy does not align, altering either the strategy or the corporate culture may be necessary, or in some cases, developing a new strategy altogether.